Assura reports £119m loss

Despite a pre-tax profit plunge, the Warrington-based healthcare developer was optimistic about its future in its results for the financial year ending 31 March.

“We remain confident in our strategy, attractive portfolio, pipeline of opportunities, and market-leading capabilities to continue providing compelling long-term returns for shareholders,” said Assura chief executive Jonathan Murphy.

The £119m pre-tax loss comes a year after Assura reported a £156m pre-tax profit. A “valuation decline driven by outward yield shift” was cited as the reason for the negative figure.

Elsewhere in the company, the results were more positive. Net rental income grew by 9% to £138m, compared to 2022’s £126.5m figure. The company’s passing rent roll also increased, going up 6% from £1356m to £143m, and boasts a WAULT of more than 11 years.

Since March 2022, Assura also acquired 28 assets. The company disposed of 65 properties for a total of £78m as well.

Assura also reported a 12% increase in EPRA earnings, which grew from £85m to £97m.

Regarding the results, Murphy said: “Assura has again demonstrated the strength and reliability of its business model with another year of strategic progress and a strong financial performance, which has enabled us to grow EPRA earnings and deliver our tenth consecutive year of dividend growth.”

He added later: “Assura’s long-term growth platform is underpinned by our strong financial position, with a secure balance sheet, recently re-affirmed A- rating from Fitch and a debt book that is fully fixed – at 2.3% and with a weighted average maturity of seven years.

Assura’s portfolio value decreased from £2.8bn in 2022 to £2.7bn. The portfolio consists of 608 primary care properties.

The financial results show that Assura has continued investing in its estates. Assura completed 10 asset enhancement capital projects during the year, reflecting a spend of £5.4m, and is on site with another eight, which have a total spend of £8.9m.

Assura also invested £200m in growing its assets: 10 through development completions, 18 through acquisitions, and another three through co-investment arrangements.

The developer is on site with 11 projects, with a total cost of £129m. There is an immediate pipeline of another five schemes, which total £37m in value. Assura expects to be on site with these projects within the year.

This past year also saw Assura secure planning permission for the conversion of Blackburn historic Griffin Lodge into a medical centre.

Regarding sustainability initiatives, Assura is on track to have its entire portfolio achieve an EPC rating of B by March 2026. It has also begun work on two net zero carbon developments, one in Fareham and another in Winchester.

The price of Assura shares on the London Stock Exchange was down 1.56% on the morning of the financial year results announcement.